The Budget and Finance Committee of the National Assembly approved at first reading amendments to the Excise Duties and Tax Warehouses Act. The bill was supported by 13 votes “in favour”, 9 “against” and no abstentions, BTA reported.
It is proposed that excise duty be levied on passenger cars with an internal combustion engine and a maximum net power of 250 kW, or 340 horsepower, and above. The rate will depend on the power: €500 for cars from 250 to 300 kW, €1,500 for those from 301 to 350 kW, €3,000 for power between 351 and 500 kW, and €6,000 for cars above 500 kW.
The measure will not apply to fully electric cars, ambulances, fire engines and vehicles operating under a special traffic regime. For hybrids, only the power of the internal combustion engine will be taken into account.
Restrictions on homemade brandy at commercial establishments
The bill includes a ban on keeping, offering and selling brandy produced at specialised small distilleries in places or premises linked to business activities. This includes establishments such as restaurants, hotels, guest houses and warehouses.
Deputy Finance Minister Lyudmila Petkova said the measure also has a health-related effect, as unregulated alcohol presented as homemade brandy is sold at establishments. “The subject of the bill is the payment of excise duty, not a ban on homemade brandy,” Petkova said.
She pointed out that each household retains the right to produce up to 30 litres of homemade brandy per year at a reduced excise duty rate, while quantities above this threshold will be taxed at the full rate. According to her, there will be no inspections of homes to establish whether the permitted quantities for personal use have been produced.
Dispute over the scope of the ban
Asen Vasilev objected to the new excise duty and said that the bill “digs into the pockets of Bulgarian citizens”. He proposed that the words “keeping” and “offering” be removed from the text on homemade brandy, leaving only the ban on selling it. According to him, the current wording could also affect cases in which people give each other brandy as a gift at the workplace.
Martin Dimitrov of “Democratic Bulgaria” said the amendments would not curb illegal alcohol trading and could instead intensify it. Dimo Drenchev of “Vazrazhdane” called for an allowable quantity to be specified that could be stored in premises linked to business activities.
Miroslav Karakashev, representing the Association of Producers, Importers and Traders of Spirits, described the proposed provisions as only a small part of the measures needed to combat illegal alcohol.
Other changes to excise legislation
The bill also provides for rules governing the movement, storage and use of energy products, electricity and other excise goods. It also sets a deadline for the sale of tobacco products and alcoholic beverages bearing an old-style tax stamp.
Measures are envisaged to increase the effectiveness of customs controls, limit evasion of excise taxation and update fines and property sanctions. Following the committee’s approval, the bill is to be considered by the plenary chamber as well.
Sources: news.bg, utroruse.com